BUAD 341 Exam 3 Flashcards Questions
With Correct Answers
the goal of business - ANSWER to make money now and in the future
On the exam the constraint will be internal, do not choose market demand
in this question, it will be one of the two machines. - ANSWER
revenue margin - ANSWER difference between selling price and raw
material price
example used from The Goal - ANSWER First person in line was Herby If
the person who has a capacity higher than Herby is tied to Herby he will
walk at the same pace as Herby. Rope is used to keep troop from
spreading
rope - ANSWER release material only when needed. prevents early
release of material. prevents accumulation if WIP
buffer - ANSWER a protection for the drum, measured in time - all
resources that feed the bottleneck must be given enough time to overcome
any delays
drum - ANSWER represents the stem bottleneck
make-to-order (pull) - ANSWER a workstation pulls output from the
preceding station as needed (based on demand)
make-to-stock (push) - ANSWER output is pushed to the next station as it
is completed (based on demand forecast)
, productivity - ANSWER throughput / operating expense = T/OE
return on investment / RI = - ANSWER net profit / inventory & investment /
RI = (T-OE)/I&I
operating expense - ANSWER all the money the system spends to turn
inventory into throughput
two categories of I&I - ANSWER investment in machinery, buildings, etc.
Inventory in the form of raw materials, work in progress (WIP), and finished
goods (FG)
inventory and investment - ANSWER all the money currently tied up inside
the system
throughput - ANSWER the rate at which sales dollars (money) are entering
the organization
what can scrap be? - ANSWER an inventory and investment or and
operating expense
cash flow - ANSWER the total amount of money being transferred into and
out of a business, especially as affecting liquidity
net profit - ANSWER the actual after working expenses not included in the
calculation of gross profit have been paid.
efficiency - ANSWER the ratio of the useful work performed by a machine
or in a process to the total energy expended or heat taken in. actual output/
effective capacity
utilization - ANSWER how well you are putting a machine to use. actual
output/ total capacity
return on investment - ANSWER the actual profit after working expenses
not included in the calculation of gross profit have been paid
five step process of TOC - ANSWER identify, exploit, subordinate, elevate,
start over
With Correct Answers
the goal of business - ANSWER to make money now and in the future
On the exam the constraint will be internal, do not choose market demand
in this question, it will be one of the two machines. - ANSWER
revenue margin - ANSWER difference between selling price and raw
material price
example used from The Goal - ANSWER First person in line was Herby If
the person who has a capacity higher than Herby is tied to Herby he will
walk at the same pace as Herby. Rope is used to keep troop from
spreading
rope - ANSWER release material only when needed. prevents early
release of material. prevents accumulation if WIP
buffer - ANSWER a protection for the drum, measured in time - all
resources that feed the bottleneck must be given enough time to overcome
any delays
drum - ANSWER represents the stem bottleneck
make-to-order (pull) - ANSWER a workstation pulls output from the
preceding station as needed (based on demand)
make-to-stock (push) - ANSWER output is pushed to the next station as it
is completed (based on demand forecast)
, productivity - ANSWER throughput / operating expense = T/OE
return on investment / RI = - ANSWER net profit / inventory & investment /
RI = (T-OE)/I&I
operating expense - ANSWER all the money the system spends to turn
inventory into throughput
two categories of I&I - ANSWER investment in machinery, buildings, etc.
Inventory in the form of raw materials, work in progress (WIP), and finished
goods (FG)
inventory and investment - ANSWER all the money currently tied up inside
the system
throughput - ANSWER the rate at which sales dollars (money) are entering
the organization
what can scrap be? - ANSWER an inventory and investment or and
operating expense
cash flow - ANSWER the total amount of money being transferred into and
out of a business, especially as affecting liquidity
net profit - ANSWER the actual after working expenses not included in the
calculation of gross profit have been paid.
efficiency - ANSWER the ratio of the useful work performed by a machine
or in a process to the total energy expended or heat taken in. actual output/
effective capacity
utilization - ANSWER how well you are putting a machine to use. actual
output/ total capacity
return on investment - ANSWER the actual profit after working expenses
not included in the calculation of gross profit have been paid
five step process of TOC - ANSWER identify, exploit, subordinate, elevate,
start over
